CANADA FX DEBT-C$ steady vs US$, rallies vs pound

Reuters Staff

2 Min Read

* C$ at C$1.0260 versus US$, or 97.47 U.S. cents
* Lack of domestic data limits likely price action
By Alastair Sharp
TORONTO, March 12 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Tuesday, with the week's
lack of domestic data expected to keep it to a tight range, even
as it made significant moves against the British and Australian
currencies.
At 9:14 a.m. the Canadian dollar was trading at
C$1.0260 to the greenback, or 97.47 U.S. cents, compared with
C$1.0264, or 97.43 U.S. cents, at Monday's North American close.
"Canada seems well positioned here between the C$1.0230 and
C$1.03 area," said Don Mikolich, executive director for foreign
exchange sales at CIBC World Markets. "We need to have some
reaffirmation on Canadian data to see Canada trade much
stronger."
If the modest gain is maintained on Tuesday, it will be the
fourth strengthening session in a row for the loonie, as
Canada's currency is colloquially known, after a sharp weakening
in recent weeks.
With no major data due in Canada this week, attention turns
to numbers due out from the United States, Canada's main trading
partner.
The Canadian currency performed well against the sinking
British pound, at one point hitting its strongest
level since June 2010 after dismal British manufacturing data
revived fears of another recession and increased bets of more
easing by the Bank of England.
But it slipped against a broadly rallying Australian dollar
, hitting its weakest level since March of last year.
The price of Canadian government debt was higher across the
curve, with the two-year bond up 3 Canadian cents to
yield 0.966 percent, while the benchmark 10-year bond
rose 29 Canadian cents to yield 1.912 percent.